| Topic Name: |
Lots of misinformation |
| Message Name: |
Tech M&A banker's wrong |
| Date Posted: |
05/27/2000 |
| Message: |
In response to your statement that there isn't much difference between coming from Goldman and coming from Bear, as an analyst, to an outsider, you're definitely wrong. I didn't come from either bank (I came from another top 5 BB), but I will tell you a fact that many other analysts will corroborate.
For the last few years, going into a private equity firm has been the "best" next job for analysts finishing two years. The top LBOs, KKR, CD&R, TPG, Tommy Lee, etc. will almost EXCLUSIVELY take from Goldman and Morgan Stanley. The headhunter that deals with these shops, namely SG Partners, generally will not even look at you if you didn't come from Goldman, Morgan, or Merrill. DLJ, SSB, CSFB, and Lehman have cachet, but are almost never the "first" choice for these places.
While the job market has improved significantly over the past year due to the dotcom situation (meaning that many superstars are going to dotcoms and vcs so that there are more jobs available for 2nd tier analysts), the demand is still for people from the top tier BB shops.
I work in a top 10 LBO shop, and when we talked to the recruiter, we said, "show us Goldman, Morgan and Merrill people". After we exhausted that pool, we did see some people from Lehman, SSB and DLJ, but no one from Bear. Most of my former ibanking friends (95% of whom left ibanking because it sucks to be a slave, and are now at private equity firms), have told me similar things. In addition, I have spoken to many recruiters who have told me the same thing. That is why, candidates like myself who graduated from a top 3 Ivy League school with a high GPA, but worked at a BB that was top 5 but not top 3, are not able to get even interviews at some of the best LBOs.
In the end, I will agree that there are a large number of unqualified numbnuts who work at places like Goldman and Morgan, but on average, their analysts are definitely several steps above an analyst from Bear Stearns. And the long term effects are also evident. Since there are few former Bear analysts working at LBO shops, and LBO shops, when hiring post-MBA candidates will almost only look at B-school students with former private equity experience, there will be a disadvantage to starting out at a place like Bear.
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